EXHIBIT 12 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars Except Ratios) Three Months Ended Six Months Ended June 28, 1998 June 28, 1998 -------------- -------------- EARNINGS: Earnings (loss) before income taxes (Note 1) $ 116.3 $(881.7) Interest expense 35.7 72.3 Portion of rent expense representative of an interest factor 6.3 12.6 ------- ------- Adjusted earnings (loss) before income taxes and fixed charges $ 158.3 $(796.8) ======= ======= FIXED CHARGES: Interest expense $ 35.7 $ 72.3 Portion of rent expense representative of an interest factor 6.3 12.6 ------- ------- Total fixed charges $ 42.0 $ 84.9 ======= ======= RATIO OF EARNINGS TO FIXED CHARGES (DEFICIENCY) (Notes 1 and 2) 3.77 -- ======= ======= <FN> Note: 1. Included in earnings (loss) before income taxes for the six months ended June 28, 1998, are restructuring charges in the amount of $140.0 and a write-off of goodwill in the amount of $900.0, both of which were recognized in the first quarter of 1998. 2. Earnings (loss) before income taxes for the six months ended June 28, 1998, were insufficient to cover fixed charges by the amount of $881.7. </FN>